An Australian university student is suing Labor MP Terri Butler after she suggested on national television he had used the word n*****s in a Facebook post.

The Queensland University of Technology student has always denied the allegations and had been cleared of racial hate charges, three years after a controversial complaint had been lodged with the human rights commission.

But Ms Butler, a former lawyer, told the ABC's Q&A program and up to one million viewers, he had used the term n*****s in the Facebook post, criticising an indigenous computer lab at the university.

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Terri Butler is being sued for $150,000 in damages by QUT student Calum Thwaites

'This is the situation. And we never found out because it was not determined. I'm saying this is what the allegations were and the matters were not determined,' Ms Butler said on Monday night.